The Industrial Policy Resolution 2022 has been formulated to create a conducive environment through an enabling Policy and regulatory framework to drive sustainable industrial growth in the State. The State is committed to simplify the processes and procedures and expedite project approvals and clearances.
Types of Sectors – All the sectors have been divided in to 4 major sectors.
Priority Sectors: Desirable Sectors likely to generate significant employment opportunities and create avenues for further value addition in the state.
Ancillary and Downstream in metal sector
Agro Processing
Cold Storage and Cold-chain infrastructure Food and Sea-food Processing
Gemstone – Cutting and Polishing; Granite – Cutting and Polishing
Handicraft, Handloom, Coir based products Information Technology (IT), IT Enabled Services (ITES) and Datacentres
Plastics
Rare Earth Minerals based value added products
Specialty Steel and its Products
Shipbuilding, Ship-repair, and construction of other mechanized floating vessels
Tourism and Hospitality
2. Thrust Sectors: Desirable Sectors dealing with New Age Technologies, Products and Services and sectors likely to have maximum multiplier effect on state’s industrial ecosystem
Aerospace and Defense
Automobiles and Auto-components
Biotechnology, Pharmaceuticals, Bulk Drug and Medical Equipment
Chemicals and Petrochemicals
Electronics System Design and Manufacturing (ESDM)
Green Energy Equipment
Green Hydrogen and Green Ammonia
Manufacturing in Aviation and Maintenance, Repair & Overhaul (MRO) facilities
Mechanical and Electrical Capital Goods
Telecommunication Equipment
Textiles, Technical Textiles, Apparel, Wearables and Luggage
White Goods and Components
3. Negative Sectors: Sectors not provided with financial incentives but supported with investment facilitation.
Rice mills with investment of less than Rs. 10 Crore in plant and machinery
Flour mills, Pulse mills & Besan mills with investment of less than Rs. 1 Crore in plant and machinery
Processing of spices with investment of less than Rs. 1 Crore in plant and machinery Confectionary with investment of less than Rs. 1 Crore in plant and machinery
Vegetable Oil Mills with investment of less than Rs. 5 Crore in plant and machinery
Bakeries and units involved in preparation of sweets and savories with investment of less than Rs. 50 Lakhs in plant and machinery
4. All other Sectors: Sectors other than the three above, provided with investment facilitation and land at concessional industrial rates
Incentives (Point 4.5 – IPR 2022)
Incentive Name
Incentive Particulars
Land Incentives
IDCO will allocate developed land in industrial areas at concessional industrial rates
Units in Priority & Thrust Sectors will be granted 100% exemption from payment of premium on land registration
New industrial units in the Thrust Sectors, creating direct employment of more than 1000 state-domiciled people, shall be eligible for land at 50% of the concessional industrial rate (except BDA and CDA)
Eligible Companies having existing investments or making new investments of more than INR 5000cr or providing direct employment to >500 people in the State, shall be provided land for setting up offices in Odisha at a concessional industrial land rate.
Stamp Duty Exemption
No stamp duty will be required to be paid in respect of the land allotted by the Government, IDCO, or Private Industrial Estate Developers to the industrial units
Exemption on Electricity Duty
New industrial units in Priority and Thrust Sectors will be 100% exempt from Electricity Duty for 7 and 10 years respectively from the date of commencement of commercial production.
Industrial units in the Priority and Thrust Sectors shall be eligible for 100% exemption/reimbursement of cross-subsidy & additional surcharges and state transmission charges on renewable energy procured from state-based renewable energy plants / GRIDCO for 7 and 10 years respectively from the date of procurement of renewable energy for commercial production in the state.
For Green Hydrogen and Green Ammonia manufacturing units,
o 100% exemption from payment of Electricity Duty for 20 years from the date of commencement of commercial production
o For renewable energy consumed, cross subsidy surcharge & additional surcharges, and state transmission charges will be exempted/reimbursed for 20 years from the date of commencement of commercial production
Power Incentives
New industrial units in Priority and Thrust Sectors shall be provided reimbursement of Power Tariff of Rs. 2/unit for a period of 7 and 10 years respectively from the date of commencement of commercial production.
For Green Hydrogen and Green Ammonia manufacturing units, reimbursement of Power Tariff of Rs. 3.00 per unit consumed and purchased from local DISCOMs / GRIDCO for 20 years from the date of commencement of commercial production
Incentive for Fixed Capital Investment
20 % (Priority Sector) or 30% (Thrust Sector) capital investment subsidy on actual investment in plant & machinery (excluding the cost of land and building) without any upper limit disbursed over 5 years from the date of commencement of commercial production.
State Goods and Services Tax (SGST) reimbursement
New industrial units under Thrust and Priority Sectors shall be eligible for reimbursement of 100% of net SGST paid, overall limited to 200% of the cost of plant and machinery, provided that the SGST reimbursement shall be applicable only to the net tax paid towards the state component of GST, after the adjustment of an input tax credit against output tax liability.
For units in Biju Economic Corridor, the overall limit is 300% of the cost of plant and machinery
Employment Subsidy
New industrial units in the Priority and Thrust Sectors shall be eligible for 100% reimbursement of the employer’s contribution towards ESI and EPF Scheme for a period of 5 and 7 years respectively from the date of commencement of commercial production for skilled and semi-skilled state domicile workers.
Environment-Friendly Infrastructure Incentives
For the new & existing industrial units in Priority and Thrust sectors, a subsidy of 25% of the investment in new plant & machinery and the cost of new technical civil works will be provided for the following green measures up to the maximum total limit of Rs. 10 crores per industrial unit: Green Buildings, Waste-water Treatment Facilities, Effluent Treatment Plant and Deep-sea discharge facility
New and Existing Industries in Thrust and Priority Sectors practicing at least 50% waste-water recovery through Zero Liquid Discharge (ZLD) by setting up of new facilities as certified by Odisha State Pollution Control Board (OSPCB) shall be provided up to 50% of capital subsidy on cost of relevant equipment up to a maximum of Rs. 10 crore per industrial unit.
Incentive for Private Industrial Parks
Capital grant limited to 50% of the cost of industrial infrastructure subject to maximum of Rs. 25 crore per park or cluster for development of quality industrial infrastructure to industrial parks and clusters promoted by private sector developers or industry associations or user units forming an SPV with a minimum land area of 100 acres
Innovation and R&D
Eligible R&D investments in the identified Priority and Thrust Sectors would be eligible for 50% assistance on investments subject to a maximum of Rs. 10 crore.
